Cost Savings with New York State Procurement Services

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Cost Savings with New York State Procurement Services
Tech News Staff Writer

The New York State Office of General Services (OGS) Procurement Services Group manages New York State's statewide centralized procurement of commodities, services and technology with a staff of over 100 and annual sales volume in excess of $3 billion.

The Procurement Services Group leverages the State’s buying power by bringing together requirements and negotiating contracts for large quantities. Thousands of active contracts from fuel oil to aggregate computer purchases are managed by the OGS Procurement Services Group which directly handles bid solicitation, evaluation, contract development and oversight. Contracts are awarded by OGS to responsible providers on the basis of value and price.

Qualified purchasing entities can then access the awarded contract pricing, often at 10% to 40% discounts from standard purchase prices. Buyers are also served by reducing administrative time spent on researching specifications, identifying responsible vendors and ensuring product and service quality.

Eligible purchasers can view the pre-negotiated state contract opportunities online. Registered organizations can also receive updates on purchasing services, changes and new initiatives through email notification.

Non-State agencies are encouraged to first determine eligibility to use OGS contracts by contacting OGS procurement customer services by phone at (518) 474-6717 or email at customer.services@ogs.state.ny.us

The Salvation Army and YMCA were pleased to learn that many of the items they had been purchasing were available at a discount through the program.

Who can use OGS Procurement Services Contracts?
While the service is free, the ability to participate is determined by laws passed by the New York State Legislature since 1953 that determine qualification. Although the purchasing program is primarily used by state agencies, local governments, and schools, the State Legislature has expanded eligibility definitions to use state contracts on multiple occasions to cover charitable organizations, libraries, and many other organizations.

Walter Bikowitz, Director of the Procurement Services Group stressed the importance of pre-registration with OGS prior to attempting to purchase contract products or services. "It is important to register to get the contract price - following registration with OGS an organization can have the vendor check with OGS to confirm they can purchase on a contract."

Determining Eligibility
Non-State agencies are encouraged to determine eligibility to use OGS contracts by contacting OGS procurement customer services by phone at (518) 474-6717 or email at customer.services@ogs.state.ny.us.

While not every nonprofit organization is eligible and a 501 c)3 status does not by itself confirm eligibility, the customer service staff at OGS can quickly determine program qualification by checking with the NY State Attorney General’s office.

Once OGS determines that an organization or entity is qualified to use OGS contracts, a simple registration process allows OGS to provide this confirmation to vendor inquiries. Orders for products and services are placed directly with the contractor listed for the item(s) or service you need so when a vendor needs to confirm your ability to participate, he/she can call OGS for quick confirmation.

Walter Bikowitz, Director of the Procurement Services Group stressed the importance of pre-registration with OGS prior to attempting to purchase contract products or services. “It is important to register to get the contract price – following registration with OGS an organization can have the vendor check with OGS to confirm they can purchase on a contract.”

Most OGS contracts can be used as soon as you receive them. Orders are placed directly with the contractor listed for the item(s) or service you need.

NY IT Aggregate Purchase Initiative
The OGS Procurement Services Group has steadily expanded and continues to introduce new cost saving programs such as the NY IT Aggregate Purchase Initiative, which provides access to discounted hardware and printers. Any authorized user of the program can participate in the initiative.

OGS began the program in the spring of 2005 by approaching the top PC manufacturers with design standards that would meet the needs of 80% of users for desktops, notebooks, and workstations. A best and final quote was requested for standard configurations while providing the opportunity to select package choices such as the size of bundled flat panel monitors.

Additionally, the printer contract provides for a minimum of a 15% discount price for printers and supplies.

While the current initiative runs from January 2006 through March 31, 2007, vendors can introduce new products as they are developed and shift to next generation products. A new initiative is expected to be introduced by April 1, 2007.

Over the past year the program has grown through outreach efforts and word of mouth. While OGS contract opportunities will not be open to all organizations, programs like the NY IT Aggregate Purchase Initiative provides an excellent opportunity to streamline IT purchasing while reducing costs in the process.

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